Revenue of $11.68 million for the 4th quarter of 2007, an increase of $4.12 million compared to 4th quarter revenue of $7.56 million in fiscal 2006.

Net 4th quarter 2007 earnings before interest, tax, amortization, stock-based compensation and other items of $1.49 million and net earnings of $254,905 after interest, tax, amortization, stock-based compensation and other items resulting in earnings of $0.04 per share and $0.01 per share, respectively. This compares with the 4th quarter 2006 earnings before interest, tax, amortization, and stock-based compensation of $7,316 and a net loss of $782,211 after interest, tax, amortization, and stock-based compensation resulting in earnings of $0.00 per share and a loss of $0.03 per share respectively, a positive net income swing of $1.04 million from 2006 to 2007.

Net before tax earnings for fiscal 2007 of $1.68 million compared to a net before tax loss for fiscal 2006 of $2.87 million, an increase of $4.55 million.

Net after tax earnings for the fiscal year 2007 of $1.02 million compared to net after tax loss for the fiscal 2006 of $2.76 million an improvement of $3.79 million year over year.

Gross margin percentage for the 4th quarter fiscal 2007 was 26.5%, compared with a gross margin of 20.0% in the 4th quarter of fiscal 2006 and 24.6% in fiscal 2007 compared to 20.0% in fiscal 2006.

Cash from operations, before changes in non-cash working capital items, was $981,189 for the 4th quarter 2007 and $2.76 million for fiscal 2007, compared to 4th quarter 2006 cash from operations of $155,625 and $407,240 for the fiscal year 2006.

A current asset balance of $15.27 million and working capital of $3.27 million.

Total assets of $26.97 million and total liabilities of $13.66 million.

“Cabo recorded its highest ever quarterly revenues in the 4th quarter of fiscal 2007 of $11.68 million.” Mr. Versfelt stated. “That’s an 11.3% increase from the previous high recorded in the first quarter of fiscal 2007 and an increase of 54% compared to the 4th quarter fiscal 2006. The increase is primarily due to strong results from our Canadian operations, combined with the addition of revenues from the Company’s international operations. On an annual basis the Company recorded a 34% growth in revenues to $38.45 million compared to $28.79 million recorded in fiscal 2006. For fiscal 2007, $1.76 million of the Company’s revenue was generated by international operations.”

“2007 is Cabo’s first significant profitable year. The Company recorded net income, after taxes, of $1.02 million and an earnings per share of $0.03,” Mr. Versfelt said. “We also improved our net earnings before taxes by 158% from a loss of $2.87 million in fiscal 2006 to $1.68 million in earnings in fiscal 2007. Increased revenues from better drill utilization and improved pricing along with improvement of cost controls in Canadian operations are the primary reasons for these increases”

“Gross margin performance of 26.5% for the 4th quarter fiscal 2007 (20.0% 4th quarter fiscal 2006) and 24.6% for the fiscal year 2007 (20.0% for 2006) was good, but there is room for improvement.” Mr. Versfelt said “We expect that all of our divisions will strive to increase their gross margins, whereby on a consolidated basis we can continue to improve our gross margin performance. We remain focused on reduced turnover of our drilling personnel, greater cost controls, better pricing from our suppliers and improved revenue margins on our contracts.”

“Over the fiscal year the Company’s asset base has seen a significant increase,” stated Mr. Versfelt. “After selling the mineral resource properties to IMMC and redistributing, or placing in trust, the 10,000,000 IMMC units, the Company’s asset base has increased by approximately $8.2 million from $18.7 million at June 30, 2006 (net assets less the resource properties) to $26.9 million at June 30, 2007. In comparison total liabilities only increased by $4.2 million during the same period.”

“We successfully expanded our operations into Spain and Central America, with the addition of Cabo Drilling Spain, SL and Cabo Drilling (Panama) Corp. in 2007,” stated Mr. Versfelt. “We added three new drills to our fleet in these regions and we also added two new drills to provide services in our growing Mexico market.”

“The Company’s business continues to remain strong, as its fundamental drivers show no significant signs of change,” stated Mr. Versfelt. “The demand for drilling services continues to increase as gold, silver, copper, nickel, zinc and uranium prices remain at historically high levels and above economic thresholds for exploration.”

Fourth quarter ended June 30, 2007

Revenues for the quarter ended June 30, 2007 were $11.68 million compared to $7.56 million in the fourth quarter of fiscal 2006. This represents an increase of $4.12 million or 54% from fiscal 2006. Net earnings for the quarter were $254,905 compared to a net loss of ($782,211) incurred in the fourth quarter of fiscal 2006. This increase in profit is primarily due to increased revenues and reduced costs in fourth quarter year over year, plus we see the positive results of 2006’s write down decisions and sale of mineral properties.

Fourth quarter gross margin of 26.5% is higher than the prior year’s fourth quarter gross margin of 20.0%, primarily due to improved pricing and higher margins in all divisions.

General and administration expenses increased to $1.66 million in the fourth quarter of fiscal 2007 compared to $1.45 million in the fourth quarter of fiscal 2006. This increase can be attributed to increased travel, a slight increase in salaries because of additional personnel, additional insurance for international operations, plus the significant increase in revenues resulted in the need for increased personnel leading to increased administration expenses.

Amortization during the quarter increased significantly to $650,233 from $389,528 an increase of $260,705. This increase can be attributed to the capital additions during the fiscal year 2007.

Interest expense increased to $94,714 during the fourth quarter of fiscal 2007 compared to $59,544 incurred in the fourth quarter of fiscal 2006. This increase can be attributed to the higher operating line during fiscal 2007 which was used to finance the increased inventories.

Year ended June 30, 2007

The results of operations reflect the consolidated performance of Cabo and its drilling subsidiaries.

Revenue for the year ending June 30, 2007 was $38.45 million compared to $28.79 million in 2006. This represents a 34.5% increase in revenues year over year. This increase can be attributed primarily to significant growth in our British Columbia and Newfoundland operations, plus revenues earned internationally have added $1.76 million during the 2007 fiscal year, compared to $785,455 earned in Mexico in fiscal 2006. The majority of the international revenue was earned during the 4th quarter. Management expects the international operations to contribute a growing percentage of the Company’s total revenue stream.

Direct costs for the year ended June 30, 2007 were $28.98 million compared to $23.02 million. The increase is a direct result of higher activity, which resulted in higher revenue in fiscal 2007. Gross margins for the year ended June 30, 2007 were 24.6% compared to 20.0% during the fiscal year ending June 30, 2006. Gross margin strengthened throughout the year with a gross margin of 26.5% earned during the fourth quarter of fiscal 2007 compared to 23.6% earned in the first quarter of fiscal 2007. Price increases in drilling supplies, labor and diesel did occur in the year, but these increases are reflected in increased contract rates for fiscal 2007.

General and administrative expenses increased to $5.52 million in fiscal 2007 compared to $5.29 million last year. At 14.8% as a percentage of revenue in fiscal 2007, general and administration costs have decreased from the 18.3% recorded in fiscal 2006. However, the Company did experience higher than normal travel, insurance and consulting costs, primarily as a result of establishing our new operations in Spain and Panama. Additionally, there was a slight increase in salaries and wages because of the addition of some administration personnel. While the Company has maintained salaries at the cost of living index for the past couple of years, it is expected that in the next fiscal year the salaries will increase at a higher percentage.

Net income, after taxes, increased to $1.02 million for the fiscal year ending June 30, 2007 as compared to a net loss of ($2.76 million) recorded in fiscal 2006. The results from fiscal 2006 were significantly affected by the write-down of the resource properties of $1.65 million. Increased revenues and the improvement of cost control in operations are the primary reasons for the increase in net income in fiscal 2007.

The Company recorded EBITDA (earnings before interest, tax, amortization, stock-based compensation and other items) of $4.01 million in fiscal 2007, a substantial increase from $530,335 in fiscal 2006.

Short term investments and marketable securities decreased $108,569, from $313,029 at June 30, 2006, to $204,460 at June 30, 2007. The decrease can be attributed to the redemption of a GIC for $55,761 and the disposition of some marketable securities. At June 30, 2007, the balance of $204,460 consists of shares in Canadian public corporations.

Accounts receivable increased by $3.32 million to $8.83 million at June 30, 2007 from $5.51 million at June 30, 2006. The increase primarily resulted from higher revenues in the fourth quarter of fiscal 2007.

Inventory levels increased by $1.83 million to $5.37 million at June 30, 2007 from $3.54 million at June 30, 2006 as a result of the expansion into Spain, Panama, and Mexico and the growing activity in Canada.

Property, plant & equipment increased to $10.82 million at June 30, 2007 from $7.84 million at June 30, 2006 an increase of $2.98 million during the year as a result of additions to the drill and moveable equipment fleet. The Company invested $4.10 million in new property, plant and equipment in 2007.

Consolidated total assets increased in fiscal 2007 to $26.97 million at June 30, 2007 from $22.22 million at June 30, 2006. The increase is primarily due to the additions to our capital asset base and higher accounts receivable at June30, 2007. The increase in accounts receivable has grown in conjunction with the increased revenues. The asset base has also been affected by the disposition of the resource properties and the investment in International Millennium Mining Corp. (“IMMC”).

Consolidated total liabilities increased by $4.23 million to $13.66 million at June 30, 2007, from $9.43 million at June 30, 2006, primarily as a result of the increased term and operating line borrowings required to fund the increased inventory and capital assets levels, plus unearned revenue also increased significantly with the addition of the projects in Spain, Panama, and Mexico, which were not in place at the end of fiscal 2006.

The Company’s current cash (marketable securities and cash equivalents) position at June 30, 2007, is $626,797 compared to $1.43 million at June 30, 2006. The decrease in cash is primarily due to the acquisition of capital assets and inventory in preparation for the summer drilling season, expansion into Spain and Panama and an increased investment in Mexico.

On December 29, 2006 Cabo closed the sale of its resource properties to IMMC. Pursuant to the transaction, the Company transferred all of the resource properties to IMMC in exchange for 10,000,000 units of IMMC. Each unit consisted of one IMMC common share and one-third (1/3) of a warrant. Each full warrant entitled the holder to purchase one share in the capital stock of IMMC for thirty-five cents ($0.35) within a period of two years.

The Company has redistributed 10,051,336 Units to its shareholders on a ratio of one IMMC unit for each four (4) shares of the Company as of the Record date, January 11, 2007. This distribution included 7,493,710 shares and 2,497,844 warrants of IMMC to the Company’s non-US shareholders during the year ending June 30, 2007 and the balance to a trust account for the U.S. shareholders, which trust account at June 30, 2007 includes 2,557,626 undistributed shares and 852,601 undistributed warrants.

There is no further obligation on the Company’s behalf to make property maintenance fees.

The Company has worked towards its strategic objective of becoming a drilling service provider of sufficient size to benefit from economies of scale and to provide the foundation from which to pursue new opportunities. Cabo is well positioned to capture an increase in revenues as the demand for mineral exploration, development and mining continues to grow. The Company’s strategy is to focus on growth by expanding its existing long-term customer base revenues, attracting new customers, and by achieving operating and administrative efficiencies.

Cabo Drilling Corp. is a drilling services company headquartered in North Vancouver, British Columbia, Canada. The Company provides mining related and specialty drilling services through its Canadian divisions in Surrey, British Columbia; Montréal, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling de Mexico S.A. de C.V. of Hermosillo, Sonora, Mexico; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; and Cabo Drilling Spain S.L. of Sevilla, Spain. The Company’s common shares trade on the TSX Venture Exchange under the symbol: CBE.

ON BEHALF OF THE BOARD

(signed “John A. Versfelt”)

John A. VersfeltChairman, President and CEO

Further information about the Company can be found on the Cabo website (http://www.cabo.ca) and SEDAR (www.sedar.com) or by contacting Investor Relations Ms. Sheri Barton at 403-217-5830 or Mr. John A. Versfelt, Chairman, President & CEO of the Company at 604-984-8894.* * * *The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.